Over the weekend, on 8 October, the OECD made a ground breaking announcement. For the first time in history, 136 countries (including five of six GCC countries, excluding Kuwait) now support the concept of a global minimum tax rate of 15% for large multinationals and the reallocation of taxing rights for the world’s largest groups. These changes are expected to have significant implications for tax payers as well as policy makers. An assessment of the proposal’s impact on organizations’ effective tax rates, cash flows and any structural changes is critical. With an unchanged effective date of 2023, groups in the GCC and across the world have just over 12 months to prepare for the changes.
At KPMG Lower Gulf, we are already assisting groups with the impact of these proposals. We would be happy to discuss what this latest agreement means for you and your business from both an international tax and domestic corporate tax perspective. Please do not hesitate to reach out to one of the team below or your usual KPMG contact for further information.
Please find additional information here (PDF 535 KB).